Apply / Commission Structures / Foundational
Salary + Commission
A guaranteed base plus per-deal commission - the most common SaaS plan.
Foundational
Beginner
How it works
A fixed base salary creates rep stability while variable commission rewards output. Pay mix (base/variable) drives leverage and risk. The classic 50/50 mix on $200K OTE pays $100K base + $100K target variable. Variable can be paid as a single rate (straight) or as tiered/accelerated structures.
Formula
Total = base + (rate x commissionable revenue) - adjusted for tiers/accelerators
Worked example
Example. An AE on $200K OTE 50/50: $100K base, plus 10% rate up to quota, 18% above quota. At 110% of $1M quota, the rep earns $100K + $100K + $18K = $218K.
Pros & cons
Pros
- Predictable rep income reduces churn risk
- Tunable leverage by role and segment
- Compatible with most strategic overlays
Cons
- More expensive than pure commission for low performers
- Requires capacity planning and quota discipline
Best for
- SaaS sales teams
- Most B2B field sales
- Roles with longer sales cycles